Bed Bath & Beyond announced a new round of mass layoffs just a week after claiming he was considering filing for bankruptcy. Through a statement, the company said that it is “necessary to adjust the size” of the company as it seeks to modify its business.
“Unfortunately, this has required making the difficult decision to say goodbye to some of our colleagues,” says a statement sent by the company to all employees and obtained by CNBC.
In an email to employees, CEO Sue Gove said the company is reducing its workforce “across our corporate portfolio supply chain and stores. However, he did not say how many employees would be affected.
The home goods retailer told employees it will ax the role of director of Transformation, held by Anu Gupta, on the same day that reported disappointing results of the third fiscal quarter.
“While we have taken several important initial steps in our recovery plan with strong execution, our third quarter 2022 results indicate that it will take longer to translate actions into results“, wrote.
The retailer has been working with advisers in recent months to avoid filing for bankruptcy while his financial situation worsened.
Bed Bath & Beyond is nearing possible bankruptcy as it your sales decrease and losses increase. The company’s store shelves have grown emptier as suppliers require advance payment, stop shipping products or change other payment terms.
Bed Bath & Beyond has also dealt with the tragedy of the death of its financial director, Gustavo Arnal, in September, which was declared a case in which he attempted his own life.
Bed Bath issued a “going business” advisory last week, saying it could run out of funds to cover expenses. The company had around 32,000 employees as of February 26, 2022, according to a company filing.
But since then, the number of company employees has been reduced. In August, he said that would cut about 20% of its workforce corporate and supply chain and would close around 150 of its namesake stores.
The company told investors that they have made progress in reducing their operating expenses and will reduce costs by an additional $80 million to $100 million, with some of those savings coming from a reduced workforce.
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Source: La Opinion